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Problem 7-5B Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] Cheetah Copy purchased a new copy machine. The new machine cost $106,000 including installation. The company estimates the equipment will have a residual value of $26,500. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Hours Used 2,800 2,000 2,000 3,200 Year Problem 7-5B Part 3 3. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations.) CHEETAH COPY Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Expense Accumulated Year Book Value Depreciation 1 $ 27,832 $ 27,832 $ 78,168 2 19,880 47,712 58,288 19,880 67,592 38,408 4 Total $ 67,592 1234

Problem 7-5B Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] Cheetah Copy purchased a new copy machine. The new machine cost $106,000 including installation. The company estimates the equipment will have a residual value of $26,500. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Hours Used 2,800 2,000 2,000 3,200 Year Problem 7-5B Part 3 3. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations.) CHEETAH COPY Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Expense Accumulated Year Book Value Depreciation 1 $ 27,832 $ 27,832 $ 78,168 2 19,880 47,712 58,288 19,880 67,592 38,408 4 Total $ 67,592 1234

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
Section: Chapter Questions
Problem 8.5E: Change in Estimate Assume that Bloomer Company purchased a new machine on January 1, 2016, for...
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I can't seem to figure out the fourth year. I tried 3200*9.94= 31808 but that was incorrect. I also tried without rounding 3200*9.9375=31800 and that was also incorrect.

! Required information Problem 7-5B Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] Cheetah Copy purchased a new copy machine. The new machine cost $106,000 including installation. The company estimates the equipment will have a residual value of $26,500. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Hours Used 2,800 2,000 2,000 3,200 Year Problem 7-5B Part 3 3. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations.) CHEETAH CОPY Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Expense Accumulated Depreciation Year Book Value 1 $ 27,832 $ 27,832 $ 78,168 2 19,880 47,712 58,288 19,880 67,592 38,408 4 Total $ 67,592 1234
Transcribed Image Text:! Required information Problem 7-5B Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] Cheetah Copy purchased a new copy machine. The new machine cost $106,000 including installation. The company estimates the equipment will have a residual value of $26,500. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Hours Used 2,800 2,000 2,000 3,200 Year Problem 7-5B Part 3 3. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations.) CHEETAH CОPY Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Expense Accumulated Depreciation Year Book Value 1 $ 27,832 $ 27,832 $ 78,168 2 19,880 47,712 58,288 19,880 67,592 38,408 4 Total $ 67,592 1234
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